Having taken the 61.8 percent Fibonacci retracement level yesterday, the world’s largest cryptocurrency by market capitalization rose to eight-day highs above $7,520 today. As of writing, the bitcoin-U.S. dollar (BTC/USD) exchange rate is at $7,459 – a 2.54 percent gain for the session, as per CoinDesk’s Bitcoin Price Index
Stepping back, prices had dropped 29 percent after the developers suspended a controversial software upgrade, known as Segwit2x, on Nov. 8.
However, the sell-off was cut short near $5,500 by the 50-day moving average (MA) on Nov, 12. A rally in the subsequent days all but erased the likelihood of a drop to $5,000 levels. Then, yesterday, a move above $7,000 improved the odds of a continued rally to record highs above $7,800. Currently, BTC is just $312 short of its Nov. 8 record of over $7,800.
Possibly exerting influence on prices in recent days, comments on social media show the investor community has started analyzing the effect of a potential rotation of money out of stocks and bonds and into bitcoin. CME Group’s recently announced BTC futures contractis likely to begin trading as soon as December…